In general, investors should stick with the physically backed funds, which do not carry the credit risk of ETNs or the risk of futures contracts and potential disruption due to new CFTC regulation of those contracts. That goes ever more so for those in tax-sheltered accounts, who will derive no benefit from an ETN.
For the leveraged funds, investors opting for a slightly longer holding period may find the PowerShares funds better, but outside of a tax-sheltered account, the main difference is in how the funds are taxed.
At the time of publication, Dion Money Management owned IAU.-- Written by Don Dion in Williamstown, Mass.
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